Interest paid in a payment
Hello, I had a tough question recently in class that I couldn't figure out how to do on my financial calculator (HP10BII)
Here's the problem: You are buying a house for $150,00 with a 10% down payment and a fixed-rate mortgage for the remainder at 8% for 20 years with MONTHLY payments. How much interest is paid on the 20th payment?
Here's what I do and where I get stuck...
150,000 (.1) = 15,000
150,00 - 15,000 = 135,000 which is my PV (Present Value)
now I have my interest at 8%/12 = 0.667 (Interest)
and for my monthly payments it is 20x12 = 240 (# of payments)
Now I know there some function to figure out how much interest is paid on the 20th payment but I don't know what I enter into the calculator to get it. So for a run-down here it what I entered into my calculator
and now I'm stuck
Any help is appreciated!